THE Chancellor and the Cabinet are “working well” on Brexit, Downing Street has insisted, as talk of a major rift at the top of the UK Government persists.

Tory Eurosceptic MPs have called on Philip Hammond to resign because of his gloomy outlook on Brexit with colleagues branding him an “Eeyore”.

On Tuesday, there was said to have been a “robust” exchange of views on Brexit at Cabinet, which No 10 denied amounted to a row but, rather, a brief discussion.

On Wednesday, the Chancellor made clear he was not ready to unlock the Treasury coffers to spend the billions of pounds needed to prepare for a “no-deal” scenario and that any spending should be delayed until the last moment. But an hour later Theresa May appeared to slap her Chancellor down when she insisted: “Where money needs to be spent, it will be spent."

She announced an additional £250 million will be spent on contingency planning to add to the £400m Mr Hammond announced in his Autumn Statement of 2016.

Today, the PM’s spokesman underlined her point, telling journalists: “We will spend whatever is necessary to make preparations for Brexit to make it a success and that includes planning for a no-deal scenario.”

Asked about the criticism of Mr Hammond as a Jeremiah on Brexit, he said: “The PM thinks the Chancellor and the Cabinet are working well together in all areas and securing that smooth Brexit that everyone wants to see, which is in the interests of the UK and the EU.”

Kwasi Kwarteng, the Chancellor’s parliamentary aide, also sought to play down reports of a Cabinet row over whether money should be spent now on preparing for Britain's exit from the EU without a trade deal.

He told BBC Radio 4's Today programme there were "slight differences of opinion" but stressed that the Government was "going to be prepared for every eventuality".

Addressing students in her Nottinghamshire constituency, former Business minister Anna Soubry, a high-profile Remain supporter, said Tory MPs who favoured a hard Brexit should "shut up" and "get behind the Prime Minister".

During Commons Questions, Liam Fox, the International Trade Secretary, insisted he and the Chancellor were in full agreement on contingency spending.

He told MPs: "The Chancellor says that we need to spend money only as necessary; that's correct. But we also need to ensure that we spend money on all areas where contingency plans are necessary."

But the SNP’s Pete Wishart later told Andrea Leadsom, the Commons Leader, during Business of the House Questions: “Well, that was a successful conference recess for the Right Honourable Lady and her party. They’ve all returned full of peace, love and understanding; all united. Well, the Brexiteers are all united against the Chancellor anyway.

“We desperately need an urgent debate about the consequences of a no-deal, hard Brexit if that lot are seriously contemplating going down that particular route. Already there are claims it could cost up to £400bn and suck 18 per cent of GDP out of our economy. No country in history has ever considered committing economic self-harm on such a scale before. We need to know what the Government’s views about the costs are and we need this urgently debated.”

Ms Leadsom responded by telling Mr Wishart that he should feel reassured that there was proper contingency planning on Brexit but that the Government “absolutely intended” to ensure there was a very good outcome on the withdrawal talks.

In the House of Lords, Tory peers rallied round Mr Hammond with Lord Cormack insisting the country was "singularly fortunate in having a Chancellor who is entirely sensible and optimistic".

To cheers and some laughter, he asked: "Shouldn't we give him every possible support."

Baroness Anelay, the Brexit minister, agreed, saying: "Yes, just as the whole of the Cabinet is of the same frame of mind."

The Chancellor is in America as part of a charm offensive aimed at promoting Britain's global standing amid a faltering domestic economy and intense fears over Brexit.

He is in Washington for the annual International Monetary Fund meeting and will travel to New York in the coming days to hold talks with the heads of financial services giants that together have a market cap of nearly £600 billion.

He will meet top bosses at JP Morgan and Citi as well as asset managers Blackstone and BlackRock, continuing a dialogue with major US banks as many prepare to shift portions of their UK operations to the EU in preparation for Brexit.

It will cap a week that will have seen Mr Hammond meet fellow finance ministers and central bankers in Washington, where he will also attend the G20 and G7 meetings, and touch on topics including productivity, digital taxation and international trade.

That is on top of a Commonwealth Finance Ministers meeting, the first attended by a UK Chancellor in seven years, and talks with members of the US administration.

On Wednesday, the Chancellor told MPs Brexit had left Britain's economy under a "cloud of uncertainty" and even warned that flights could be grounded in the event of a no-deal scenario.

The UK was singled out on Tuesday by the IMF as the only major economy not to see its growth forecast upgraded.